On November 2, the National Treasury published a draft carbon tax bill for comment.

It is commendable that the South African government takes very seriously issues of environmental sustainability and is actively putting in place measures aimed at reducing carbon emissions in order to sustain the environment.

But caution must be taken to ensure that such measures, including the introduction of carbon taxes, do not further strain the already ailing South African economy.

The introduction of carbon tax is considered the most effective instrument for curbing climate change compared to other measures such as the emissions trading system.

In the South African context, the tax augments existing environmental legislation and underpins the "polluter pays" principle. Therefore, it stands to reason that the introduction of a carbon tax will play a crucial role in curbing greenhouse gas emissions which contribute to global warming and, in turn, result in climate change.

There is no doubt that, along with other developing countries, SA should and must play an active role in curbing climate change, which is a looming threat to the sustainability of the environment for present and future generations.

But the question is whether it is worthwhile for SA to be at the war front against climate change?

Caution needs to be taken to ensure that efforts to reduce greenhouse gas emissions do not add further insult to SA's already bleeding economy or, even worse, hamper the country's economic growth plans.

The release of the draft carbon tax bill also came at a time when the SA economy in general and the metals and engineering sector in particular are burdened with a host of negative economic factors such as higher production costs, lack of demand, labour unrest and compliance red tape, among others.

For a developing country such as SA, which has identified re-industrialisation as one of the key initiatives aimed at unlocking the country's economic growth potential, introducing a carbon tax poses a threat to SA's growth plans. Industrialisation naturally entails large-scale manufacturing and other productive economic activities that inevitably generate emissions in the process.

Re-industrialising the South African economy would also result in an increased demand for power. South Africa's heavy reliance on coal for electricity generation means that as the country re-industrialises and as more power is generated, more emissions will be generated in the process. Imposing carbon taxes will hinder the government's own objectives of stimulating the South African economy through re-industrialisation. This would deal South Africa's growth prospects a serious blow.

Apart from potentially having a negative impact on the government's own growth plans, such a tax has the potential to crowd out foreign direct investment. Why should foreign investors invest in a country that punishes investors when there are other countries on the African continent that have no such tax?

Another unintended consequence of the proposed carbon tax is the impact it would have on consumers who would ultimately bear the brunt as companies such as Eskom increase tariffs in order to recoup expenditure incurred from the payment of the carbon tax.

South Africa's eagerness to decelerate environmental damage (displayed in its pledge to reduce emissions by 34% by 2020 and 42% by 2025, while one of the biggest polluters, the US, pledged a reduction in the region of only 17% from its 2005 levels by 2020) is unnecessary.

We do not in any way condone irresponsible corporate conduct. We support sustainability.

SA contributes less than 1% to global emissions. There is no reason for the country to take the lead in climate change mitigation by being one of the few countries to introduce a carbon tax.

lMphofu is safety, health, environment and quality executive and Mokoetle is industrial relations and legal services executive at the Steel and Engineering Industries Federation of Southern Africa